XRP Bulls Eye a Return to $0.51 on SEC v Ripple Optimism

Key Insights:

• On Monday, XRP extended the winning streak to five sessions, gaining 2.47% to end the day at $0.4945.
• Hopes of a Ripple victory in the ongoing SEC v Ripple case delivered support.
• The technical indicators are bullish, signaling a return to $0.52.

On Monday, XRP rose by 2.47%. Following a 2.22% gain from Sunday, XRP ended the day at $0.49450. Significantly, XRP held onto the $0.49 handle for the first time since April 19.

Following a bearish morning, XRP fell to a late afternoon low of $0.47617 before making a move. Steering clear of the First Major Support Level (S1) at $0.4731, XRP rose to a late session high of $0.49510. XRP broke through the First Major Resistance Level (R1) at $0.4891 to end the day at $0.49450. The Second Major Resistance Level (R2) at $0.4956 capped the upside.

Optimism Toward a Ripple Victory Delivered Support

It was a quiet Monday session, with the US markets closed for Memorial Day. There were no SEC v Ripple case-related news updates to provide direction. The lack of updates left XRP investors in an optimistic mood.

With the Courts forcing the SEC to release unredacted versions of the William Hinman speech-related documents, there is the hope of a settlement. The SEC has tried to shield the Hinman documents from the public on at least seven occasions. SEC Chair Gary Gensler may prefer to settle rather than allow the content to receive public scrutiny.

The upside came despite reports of several US Republicans planning to vote against the debt ceiling deal.

The Day Ahead

It is a busier Tuesday session. US economic indicators and Fed commentary will draw interest this afternoon. The CB Consumer Confidence Index will move the dial. However, US debt ceiling-related news will remain the key driver. Reports of more Republicans planning to vote against the deal would weigh on riskier assets.

However, SEC v Ripple case updates would have more impact. Investors await the disclosure (June 13) of the William Hinman speech-related documents that could materially affect the direction of the case.

Investors should also track SEC v Ripple chatter, SEC activity, and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was down 0.67% to $0.49120. A choppy start to the day saw XRP rise to an early high of $0.49796 before falling to a low of $0.49105.

Technical Indicators

Resistance & Support Levels

XRP needs to avoid the $0.4886 pivot to target the First Major Resistance Level (R1) at $0.5010. A move through the morning high of $0.49796 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5075 and resistance at $0.51. The Third Major Resistance Level (R3) sits at $0.5265.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4821 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4697. The Third Major Support Level (S3) sits at $0.4507.

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.46864. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($0.46864) would support a breakout from R1 ($0.5010) to target R2 ($0.5075) and $0.51. However, a fall through S1 ($0.4821) would bring S2 ($0.4697) and the 50-day EMA ($0.46864) into view. A fall through the 50-day EMA would send a bearish signal.